US candy inflation hits double digits
NEW YORK
For the second year in a row, U.S. shoppers are seeing double-digit inflation in the candy aisle.
Candy and gum prices are up an average of 13 percent this month compared to last October, more than double the 6 percent increase in all grocery prices, according to Datasembly, a retail price tracker.
That’s on top of a 14 percent increase in candy and gum prices in October 2022.
“The price of candy has gotten to be outrageous,” said Jessica Weathers, a small business owner in Shiloh, Illinois. “It doesn’t make sense to me to spend $100 on candy.”
Other consumers are changing what they buy. Numerator, a market research firm, said its surveys show about one-third of U.S. consumers plan to trade down to value or store brands when buying candy for trick-or-treaters this year.
Weather is the main culprit for the higher prices. Cocoa prices are trading at 44-year highs after heavy rains in West Africa caused limited production in the season that began last fall. Now, El Nino conditions are making the region drier and are likely to linger well into the spring.
Kelly Goughary, a senior research analyst with Gro Intelligence, an agricultural analytics firm, said Ivory Coast — which produces around 40 percent of the world’s cocoa — is already showing the signs of one of its worst droughts since 2003.
Meanwhile, global sugar prices are at 12-year highs, Goughary said. India, the world’s second-largest sugar producer after Brazil, recently banned sugar exports for the first time in seven years after monsoon rains hurt the upcoming harvest. Thailand’s output is also down.
Those costs, combined with increases for labor, packaging, and ingredients like peanuts, are pushing up prices for all kinds of candy.
